NBP posts Rs26bn profit, Rs8 dividend

March 03, 2025 (MLN): The National Bank of Pakistan (PSX: NBP) reported a significant decline in its profit after taxation for the year ended December 31, 2024, posting Rs26 bilion compared to Rs53bn in 2023, reflecting a drop of 50%.

The board of directors has recommended the highest-ever final cash dividend of Rs8 per share (80%) for the year 2024.

The bank’s earnings per share also fell to Rs12.21 from Rs24.96 in the previous year.

NBP’s total income grew 13% to Rs241.7bn in 2024 from Rs214bn in 2023, primarily driven by a 57% increase in non-markup income, which reached Rs70.3bn.

This surge was supported by a 537.7% rise in gains on securities, totaling Rs28bn, along with a 21% increase in fee and commission income, which stood at Rs29bn.

However, foreign exchange income dropped by 23.6% to Rs6bn, and other income fell by 59.6% to Rs725m.

Despite the rise in revenue, the bank faced a substantial increase in expenses.

Operating expenses surged by 89% to Rs180bn from Rs95bn, contributing to an overall 88.7% rise in total non-markup expenses, which stood at Rs180bn.

NBP’s profit before taxation declined by 44.7% to Rs57bn in 2024, while credit loss allowances and provisions decreased by 70.7% to Rs4.5bn, offering some relief.

Tax expenses also dropped by 38.7% to Rs30.6bn.